Private funds domiciled in the Cayman Islands will have more time to register as a reporting Cayman financial institution with the Cayman Islands Tax Information Authority (TIA) as required by the Foreign Account Tax Compliance Act (FATCA).
In accordance with the FATCA intergovernmental agreement (IGA) between the US and the Cayman Islands, Cayman financial institutions, including private funds, are required to register with the TIA.
Registration with the TIA’s Automatic Exchange of Online Information (AEOI) portal was originally required by March 31, but that deadline has been extended to April 30 “in order to facilitate industry compliance,” according to the Department for International Tax Cooperation’s website.
In addition to using the online portal to register, Cayman funds will also use the portal to submit the annual reports with respect to their “US reportable accounts,” as required under FATCA. Reporting for the 2014 calendar year is due by May 31. Cayman financial institutions will also use the portal to report the required information under UK FATCA and the OECD Common Reporting Standard.
Cayman signed its IGA with the US in December 2013. Under the agreement, financial institutions based in Cayman will supply local authorities with information on any of their US account holders. Cayman authorities will then relay that information to the IRS. However, unlike the other fund centers, Cayman’s deal does not require US-based financial institutions to share information on accounts owned by Cayman citizens.